C-Suite – Financial Posthttp://business.financialpost.com
Canada Business News | Financial Updates & InformationMon, 19 Mar 2018 14:52:49 +0000enhourly1http://wordpress.com/https://financialpostcom.files.wordpress.com/2017/09/financialpost-38x250.pngFinancial Posthttp://business.financialpost.comCanada Business News | Financial Updates & InformationJob shadowing with CEOs grows exponentially, as university students learn to be leadershttp://business.financialpost.com/executive/0320-biz-dd-ceox1day
http://business.financialpost.com/executive/0320-biz-dd-ceox1day#respondFri, 16 Mar 2018 10:41:10 +0000http://business.financialpost.com/?p=1559252Job shadowing is a common practice for many enterprises as a means to expose students or new recruits to the daily workings of a particular profession. But it’s not common to see high-powered CEOs take a student under their wing for a day.

Every year, up to 18 Canadian CEOs take part in a unique student job-shadow program, developed by executive search firm Odgers Berndtson, called CEO x 1 Day. This year, the program matched third- and fourth-year university students with top CEOs from organizations that included Kellogg’s, PayPal Canada, Cossette, Vancity, Alberta Innovates and Amnesty International. CEO x 1 Day is a global initiative that originated in Spain and now runs in 12 countries. Canada was the second country to adopt it.

This year, Canada’s program reached a significant milestone: for the first time, more than half of this cohort’s CEOs are women, says Jane Griffith, partner and national diversity leader at Odgers Berndtson in Toronto. “This shows the program is resonating with both female and male leaders.”

The program benefits both students and leaders, she stresses. “Students learn first-hand what it really is to be a leader. Many come back and say they didn’t expect CEOs to be so humble, respectful and empathetic, rather than just scary bosses. What I hear from CEOs is that they love connecting with next generation leaders to get a sense of what they think and what drives them.”

Getting CEOs on board has been surprisingly easy, she adds. “It’s not much of a sell. In fact, we get a lot of requests from CEOs to be part of this. The trick is getting their time.” Demand from applicants is also strong. Over the five years the program has run in Canada, 2,000 students have applied for 88 matches.

Now that they have reached gender parity, the plan is to duplicate that moving forward, Griffith says. “That’s where we as a firm want to get to. We want people to see leaders based on their ability and skills and not gender, ethnicity or sexual orientation. As part of that, we want to normalize female leadership and show students that it’s not abnormal or exceptional to have a female leader.”

Tamara Vrooman, president and CEO of Vancouver City Savings Credit Union (Vancity) in Vancouver, spent her job-shadowing day with Gurjodh Mahal, a fourth-year business student from Simon Fraser University. She says she was pleasantly surprised to have a male student on board for the day. “The program was very thoughtful in terms of matching CEOs and students in a way that was mutually beneficial. Leaders are good at talking about we should do, but what we actually do is sometimes different. This is less about what young people should do, than it is about talking through what leadership actually looks like and provide better value.”

Having had the advantages of a strong mentorship network throughout her own career, Vrooman says that as a female CEO it’s important to take advantage of these opportunities to showcase women’s leadership to both men and women. “It’s important both as a role model for women (students), who see themselves as leaders one day, but it’s also important for men since they will be working for women leaders.”

With three older sisters pursuing their own careers, Mahal says he was grateful for the opportunity to work with a female leader. “I know my sisters are always facing difficulties and have a real understanding that it can be difficult for women to progress in a workspace,” he said. “Those barriers might not always be apparent to someone coming in. With Tamara, it was nice to see a different perspective. Not only did I learn more about the industry, I learned about her successes and goals and a lot of what she valued.”

Vrooman says taking part in the CEO x 1 Day program was a worthwhile experience for her as well. “Of course, it’s important for men in leadership positions to create space and provide opportunities for young women in leadership roles. But it’s equally important for women leaders to create examples and connections for men to work for women. We need both.”

One thing from the experience that will stay with her was a comment Mahal made during his visit. “He said he was really surprised by how real a CEO can be; and that how we deal with things is not so foreign from the way anybody else does. Hopefully job shadowing brings the perspective that, as CEOs, our roles are filled by people with strengths, weaknesses and a sense of humour just like anyone else. We all have something to offer and learn.”

]]>http://business.financialpost.com/executive/0320-biz-dd-ceox1day/feed0aMar3.JeromeDeis3850denisedeveaufpBlackBerry CEO John Chen gets $128-million award to stay on for at least 5 more yearshttp://business.financialpost.com/investing/blackberry-ceo-chen-gets-128-million-award-to-continue-revival
http://business.financialpost.com/investing/blackberry-ceo-chen-gets-128-million-award-to-continue-revival#commentsThu, 15 Mar 2018 16:41:11 +0000https://financialpostcom.wordpress.com?p=1559052&preview=true&preview_id=1559052BlackBerry Ltd. Chief Executive Officer John Chen signed a new contract worth at least US$128 million to keep him on the job for at least five years.

The pay package includes 10 million restricted stock grants — valued at $128 million as of Wednesday’s close — that will vest through November 2023, the Waterloo, Ontario-based company said Thursday in a statement. Half will pay out if share-price goals of US$16 to US$20 are reached. He’ll also get a performance-based cash award if the stock hits US$30. The value of the cash grant will be disclosed in the company’s proxy circular in May, according to the statement.

Since taking over in 2013, Chen has turned the company from a fallen smartphone maker into a smaller and leaner seller of security-focused software. He’s cut thousands of employees and got out of the phone business completely. BlackBerry has also become more aggressive in pursuing patent claims against firms benefiting from technology the Canadian firm maintains it invented years ago.

BlackBerry shares climbed 15 per cent this year through Wednesday to US$12.80 in New York, after gaining 62 per cent last year.

Chen’s base salary and annual bonus will remain at US$1 million and US$2 million, respectively. Over the past two years, Chen, 62, has voluntarily requested that his cash bonus be paid in shares, according to last year’s proxy filing.

]]>http://business.financialpost.com/investing/blackberry-ceo-chen-gets-128-million-award-to-continue-revival/feed10315chenBloomberg NewsRaise a glass! Your next hotel room might offer wine on taphttp://business.financialpost.com/entrepreneur/raise-a-glass-your-next-hotel-room-might-offer-up-wine-on-tap
http://business.financialpost.com/entrepreneur/raise-a-glass-your-next-hotel-room-might-offer-up-wine-on-tap#commentsThu, 15 Mar 2018 12:35:17 +0000https://financialpostcom.wordpress.com?p=1557383&preview=true&preview_id=1557383The situation: You key in to your hotel room after a stressful business meeting. All you want is an immediate glass of wine to drink while watching the evening news.

The problem: You don’t want to open the full bottle of ludicrously overpriced plonk in the minibar. Room service will take 45 minutes to bring you a Saran-wrapped glass filled with Champagne that’s too warm.

A growing number of hotels have found a solution to this widespread dilemma: the Plum machine. About the size of a large espresso machine, the latest in-room luxury preserves two opened bottles of wine for weeks at the perfect serving temperature and allows you to draw off a glass with one touch.

When it debuted as the new “essential” home wine appliance last fall at US$1,499.00, I admit I was unmoved. Owning one made sense only if (1) you take days to finish off a bottle of vino, or (2) hate to open bottles yourself.

But now a great use case has really revealed itself: For hotel guests, the Plum is a godsend, even if you have to pay for each glass you drink. And a touchscreen provides lots of information on the wine, tasting notes and even a virtual tour of the winery, if you want. Take that, Alexa!

The first hotel to capitalize on the Plum’s in-room potential was the Four Seasons in Silicon Valley, Calif., where the pace is fast and the clientele savours the latest hi-tech amenities. General Manager Florian Riedel says its suites feature the Plum, and all rooms will have them by the end of 2018. The sleek, brushed-stainless cube sits nicely on a sideboard, taking up very little space for the pleasure it brings.

The mastermind behind the Plum, tech entrepreneur David Koretz, admits he started working with hotels two years before the device officially launched. He enlisted engineers from Google, Amazon’s Lab 126 and Motorola to develop the technology. It uses double-cored needles to pierce the bottles’ corks and then injects argon gas to preserve the wine.

“I initially created Plum to solve my own problem — I wanted the perfect glass of wine at a touch when I got home,” Koretz said in an email. “But I quickly realized that the hotel guest experience was far worse (than mine).” And he saw the market: the world’s four million or so luxury hotel rooms.

So far, he’s made nearly a dozen deals in the U.S., including Miami Beach’s La Confidante, the Hyatt Unbound Collection and the Rosewood Sand Hill near Palo Alto, Calif., which rolled out its Plum program last month. This spring there will be more, such as San Francisco’s the Clift and the Dallas Park Cities Hilton. Future brands include the St. Regis and the Waldorf Astoria. International expansion is a given.

For oenophiles, a key question is what wines the machines contain. Do they beat out the usual minibar fare?

Well, pretty much. At La Confidante, the Plum in every room dispenses Evesham Wood Pinot Noir from Oregon (US$5.25 for a two-ounce glass; US$16 for 5 oz.) and Justin Sauvignon Blanc (US$4, US$12) from Paso Robles. While these are attractive, well-chosen wines, they’re hardly what I’d call special. In retail shops, the crisp, citrusy sauvignon blanc costs a mere US$14. The Evesham Wood pinot is spicy and perfumed, a decent bottle at US$26. Still, it’s instant gratification — and for guests in the Penthouse and Miranda suites, unlimited glasses will be free during stays until April 30.

The Four Seasons Silicon Valley wines are a step up in quality and price. Both are Napa stars: bright, elegant Newton Unfiltered chardonnay (US$40 retail) and vibrant, distinctive Chappellet cabernet sauvignon (US$60 retail), with per-glass Plum prices ranging from US$14 to US$18.

But since it’s so easy to swap out wine bottles in the Plum, these standard-level wines don’t have to be your only choices. Florian Riedel explains, “When guests stay frequently, we usually know about their wine preferences and can choose something to surprise them.” Nice. For an additional charge, you can let the hotel know what you want to drink while you’re in residence. Very nice!

Many hotels will, no doubt, follow suit. “Hotel 2020: The Personalization Paradox,” a report published 18 months ago by IBM Global Business Services, said personalizing a guest’s experience is what will help the industry survive in the face of such existential threats as Airbnb.

And the Plum seems perfectly timed, as the minibar has become a flop for many hotels. From 2007 to 2012, according to PKF Hospitality Research Inc., hotel revenue from minibars dropped 28 per cent. Insane prices for poor quality is the reason many shun the wines. (There are such exceptions as Colorado’s the Little Nell, where one might find a Domaine Dujac Burgundy.) Minibars are a hassle for hotels, too. Employing humans to check and restock them daily is very expensive.

The Plum, on the other hand, automatically keeps track of how many glasses you drink, adds the cost to your hotel bill and even notifies management when it’s time to replace the bottles.

It also fits neatly into the current tech-savvy hotel room trend. “Technology,” says Koretz, “is forcing hoteliers to rethink what service means in an era where they may never interact with the guest in person.”

So far, the in-room Plum’s biggest problem is awareness. As guests checked out at the Four Seasons, some were asked why they hadn’t tried a glass of wine from the machine. They replied that they had thought it was an air purifier.

Maybe the Plum needs to include a voice alert offering you a glass of wine when you enter the room.

]]>http://business.financialpost.com/entrepreneur/raise-a-glass-your-next-hotel-room-might-offer-up-wine-on-tap/feed1a0912_biz_attic_pellerBloomberg NewsClienteling on iPad gives clothing retailer Laura a leg up on the competitionhttp://business.financialpost.com/sponsored/business-sponsored/clienteling-on-ipad-gives-clothing-retailer-laura-a-leg-up-on-the-competition
http://business.financialpost.com/sponsored/business-sponsored/clienteling-on-ipad-gives-clothing-retailer-laura-a-leg-up-on-the-competition#respondFri, 09 Mar 2018 21:26:34 +0000http://business.financialpost.com/?p=1555236Canadian clothing retailer Laura found a new school solution to the age-old question of how to offer a better personalized service.

Starting in 2016, Laura completely overhauled the way they did things behind the scenes. Scribbled notes in black books – once the norm among the company’s 1,500 nationwide associates who work in the stores – were replaced with a deployment of iPads loaded with a custom iOS field sales app.

In addition to using the iOS app as a communication hub to update their associates on all marketing and product updates, their weekly markdowns formerly implemented using 1980s barcode scanners are now being done using iPads. It’s allowed the retailer to save significant time in its stores, countrywide.

These changes could’ve been costly and arduous to make, while alienating their longtime associates used to doing things a certain way.

But in the end, the transition went incredibly smoothly and Laura, in business since 1930, now believes they’ve got a technological leg up in the highly competitive clothing retail industry.

The iOS solution on iPad that has become the standard among their employees was created using technology by Montreal-area company Beehivr. Founder Jean-Philippe Laforge wanted to create a sales platform for companies looking to empower their sales teams and build relationships with their customers.

“In a couple of hours, a company can assemble all its marketing assets in one app that can be further enhanced by connecting to powerful modules,” Laforge explained. “For years, people have been using the same tools: paper brochures, PDFs, presentations, videos. But even these formats are 30 years old.”

Laura’s iOS field sales app is used primarily for what is called “clienteling,” which encompasses everything a company does to nurture stronger relationships with clients.

“What’s exciting about our internal iOS app for retail employees is that Laura has always had a really deep relationship with the customer,” said Ian Richards, vice-president of digital marketing and CRM (customer relationship management) at Laura. “Keeping notes on your customers in a black book was great 15 years ago, but when you think about today and the vast amount of data available, it was a restrictive system.”

The iOS app on iPad is used by Laura’s associates for just about everything. The app has customer data, shopping and browsing info on 2 million customers, serves as a communications hub with pretty much every department in the company, and can be used to make pricing adjustments. Laura is also rolling out a new feature that will allow associates to send personalized communications to their clients by email or text message.

Even Laura’s telemarketing process has had a data-centric update: associates will receive calling lists on their iPad of customers that are due for a visit, and can use artificial intelligence to make personalized clothing recommendations for each customer.

“It’s about being able to truly deliver personalized service and one-to-one communication,” Richards added.

Laura originally reached out to Beehivr in March 2016 after learning it was a member of the Apple Mobility Partner Program. By November of that year, the first iteration of the platform was ready to be rolled out into stores.

“We didn’t know how our associates would react to it at first,” said Martin Thibodeau, vice-president of Information Technologies at Laura. “But a lot of our associates were already using their own personal social media accounts and smartphones to communicate with their customers, so we just gave them an official platform to do it.”

Laforge said coming up with a simple, intuitive interface is key when it comes to creating a useful app.

“One of the greatest qualities of iPad is that, by design, it can’t be complicated,” Laforge said. “There’s no mouse or keyboard – everything is at your fingertips. In addition, iOS provides an amazing user experience while ensuring security and easiness of deployment. ”

Although Beehivr counts a number of businesses – both retail and non-retail – as clients, the core of their platform remains consistent.

“We’re trying to change how meetings are happening between sales professionals and clients,” Laforge said. “There’s a specific moment when you’re meeting a client, and that’s what our app is for. We can configure just about anything, but what stays the same is transforming marketing assets and business processes into one app, pushing content remotely, and gathering data from all these iPads.”

For Laura, modernizing has meant being more efficient with how they communicate, and reinforcing their values of having deep relationships with their customers.

“It’s about bringing the black book into the digital age,” Richards said.

Laforge concurred: “We’re not trying to transform the end goal for these companies. We’re trying to change the way they get there.”

This story was created by Content Works, Postmedia’s commercial content division, on behalf of Beehivr

Zijderveld, the Anglo-Dutch consumer-product giant’s European president, joins the door-to-door makeup seller after it split off its declining U.S. business and moved its headquarters to London. The company said the shift was aimed at helping it focus on farflung international markets.

The move puts a man at the helm of a business that calls itself “the company for women.” The 131-year-old beauty brand uses female empowerment as a core part of its marketing message. Avon has not had a male CEO since 1999, as McCoy was preceded in the role by Andrea Jung, who stepped down in 2012.

Zijderveld said in a statement: “I am thrilled to be joining Avon at such an important chapter in the company’s turnaround. I strongly believe in the opportunity and relevance of direct selling for today’s representatives and consumers. Avon is an iconic brand with an incredible global footprint as the world’s leading direct-selling beauty company, operating in the attractive and growing beauty category.”

McCoy’s departure, announced in August, followed pressure from activist investors, who called for the appointment of a new chief after disappointing financial results. A group led by Shah Capital, Barington Capital Group and NuOrion Partners — collectively owning about 3.5 per cent of the shares — also urged the board in January to hire financial advisers to explore a possible sale.

Prior to serving as Unilever’s president of Europe, Zijderveld held top posts in the Hellmann’s mayonnaise owner’s Southeast Asia and Australasia operations, as well as its Middle East and North Africa business. Avon, which has retained a U.S. stock listing, said the appointment was effective immediately.

“With his 30-year track record as a proven global leader, Jan has driven profitable growth in large, multi-channel, complex consumer businesses across emerging, developing and developed markets,” Avon Chairman Chan Galbato said in a statement.

Avon sees brighter prospects for its business model in emerging markets, after struggling to keep pace with American women who now take their makeup cues from social media rather than door-to-door sellers.

]]>http://business.financialpost.com/executive/c-suite/avon-picks-first-male-ceo-since-1999-naming-unilever-veteran/feed0Avon Products Gives Tour Of Its New Headquarters In New YorkBloomberg NewsIn C-suite roles without a path to the top, women hold more than 50% of jobshttp://business.financialpost.com/executive/c-suite/in-c-suite-role-without-path-to-top-women-hold-over-50-of-jobs-0208-bc-csuite-women-majority-bloom-234-words-f-02-07-18-1218-pm
http://business.financialpost.com/executive/c-suite/in-c-suite-role-without-path-to-top-women-hold-over-50-of-jobs-0208-bc-csuite-women-majority-bloom-234-words-f-02-07-18-1218-pm#respondWed, 07 Feb 2018 21:00:19 +0000https://financialpostcom.wordpress.com?p=1539501&preview=true&preview_id=1539501In the corporate world, men still hold the vast majority of executive-level jobs — with one notable exception. At nearly 60 per cent of the 100 biggest U.S. companies by revenue, the Chief Human Resources Officer is a woman, according to new data from Russell Reynolds Associates.

Last year, women made up more than half of newly appointed HR executives, a role that’s typically responsible for ensuring a company can acquire and develop the staff it needs to execute the larger business plan.

It’s also one of the few C-suite roles that almost never leads to the Chief Executive Officer position. Treasurer and general counsel — other senior positions in which women have made headway — also aren’t seen as feeders for the top job.

Overall, women continue to be underrepresented in the top role at Fortune 100 companies. Last year, 10 such firms appointed new CEOs, according to the study. Only one was a woman — Gail Boudreaux at Anthem Inc. That makes a total of seven female CEOs among the 100 largest U.S. companies based on revenue.

]]>http://business.financialpost.com/executive/c-suite/in-c-suite-role-without-path-to-top-women-hold-over-50-of-jobs-0208-bc-csuite-women-majority-bloom-234-words-f-02-07-18-1218-pm/feed0aGettyImages-610861498Bloomberg NewsEmployees say they’re still afraid to report sexual harassmenthttp://business.financialpost.com/executive/c-suite/employees-say-theyre-still-afraid-to-report-sexual-harassment
http://business.financialpost.com/executive/c-suite/employees-say-theyre-still-afraid-to-report-sexual-harassment#respondTue, 06 Feb 2018 13:03:42 +0000https://financialpostcom.wordpress.com?p=1536397&preview=true&preview_id=1536397At a moment when public attention to sexual harassment is at an all-time high, most workers say they’re still afraid to report misconduct because they fear retaliation or inaction.

According to a survey of managers and their employees released Thursday, 11 per cent of workers said they experienced harassment in the last year. Among them, three out of four didn’t report it to their managers. The most common form of harassment was verbal, including sexual comments and unwanted advances.

“It appears that employees don’t feel that they have the power to bring allegations forward in a way that won’t harm them,” said Evren Esen, director of workforce analytics for the U.S. Society for Human Resources Management, which conducted the study.

The survey also revealed how differently managers and their employees see their workplaces. A majority of executives said they considered harassment rare at their companies, compared with only 35 per cent of non-management employees who shared that view. And while 94 per cent of companies said they have anti-harassment policies, only 78 per cent of employees knew they existed.

Among human resources professionals, 32 per cent said they had received at least one report of sexual harassment in the past year. About the same proportion said they’d seen an increase over that time period. About a third of the organizations have made changes to sexual harassment training in the past year, according to the study.

]]>http://business.financialpost.com/executive/c-suite/employees-say-theyre-still-afraid-to-report-sexual-harassment/feed0aGettyImages-486105191Bloomberg NewsCognitive solutions for innovation: Are you a Reinventor, a Tactician, an Aspirational or an Observer?http://business.financialpost.com/executive/cognitive-solutions-for-innovation-are-you-a-reinventor-a-tactician-an-aspirational-or-an-observer
http://business.financialpost.com/executive/cognitive-solutions-for-innovation-are-you-a-reinventor-a-tactician-an-aspirational-or-an-observer#respondThu, 01 Feb 2018 12:10:01 +0000http://business.financialpost.com/?p=1533175How does your company approach artificial intelligence and cognitive computing? Is it quick to leverage technology to automate an enterprise process, configure a chatbot, and draw insights to serve up innovative customer experiences? Or is your company observing these changes in business practices from the sidelines, unsure of whether to adopt them? Perhaps your approach is somewhere in between?

Leading organizations recognize that innovations once unimaginable are now within sight and are redesigning their enterprises in the hunt for ideas not yet conceived, paths not yet explored and opportunities not yet uncovered. Their executives are less inclined to see competition coming from outside their industry and to instead search for innovation externally among partners.

According to a recent report from the IBM Institute for Business Value, this approach and mindset may be more widespread than it was three years ago, which raises intriguing questions: Is disruption abating? Are organizations more likely to stay in their lanes? The answers depend on an organization’s approach to and use of advanced analytics and data as a foundation for digital reinvention.

The report, which drew on input from more than 3,000 C-suite executives in Canada, segmented respondents by their current use of AI to automate or autonomize their business processes, as well as their planned future investment in this technology over the next two to three years.

Overall, 34 per cent of organizations plan to move forward with AI technology, but further analysis reveals significant differences in organizations’ capabilities, strategy and view of future advantage. These differences led IBM to classify respondents by archetypes: Reinventors, Tacticians, Aspirationals and Observers.

Reinventors take a strategic approach to enabling their enterprise with AI technologies – they solve complex problems, infuse intelligent capabilities into processes and invest to create a new and preferred future. Their enterprise design approach transforms both business and operating models to advance innovation as part of an ecosystem. Reinventors act in concert with an extended network of partners, including sharing their resources and assets, to continuously reinvent their businesses and even their industries as a whole.

Tacticians have updated select activities with AI point solutions, and are adept at remodelling parts of their business but are less focused on applying this technology to remake the enterprise. Tacticians are more insular than Reinventors, less likely to collaborate, share resources with partners or source innovation externally.

Aspirationals are still plotting their first forays into AI. They plan to use these technologies to overhaul their organization in the face of industry convergence, rising cyber risks and shifting consumer demographics. Aspirationals expect AI to prompt cross-enterprise transformation and a consequent shift to ecosystems.

Observers have not yet adopted AI; few have been impacted by recent disruptive forces and, for the most part, intend to remain on the AI technology sidelines.

As you can see, Reinventors and Aspirationals are remarkably alike. They are both proactive and positive when it comes to the convergence of technologies and negate reports that AI threatens jobs. Instead, they’re confident new technologies will free up their existing employees from routine tasks, improving retention and increasing productivity. They also believe it will enhance the emotional intelligence of their employees.

Reinventors, Tacticians and Aspirationals all consistently agree that AI’s most significant impact on the operating model will be in risk management. They are particularly focused on the benefits of early intervention, but also the possibility of better prevention. They speak of risk-sharing innovations, evaluating the risks of different business models and coping with complex regulatory issues.

What sets Reinventors apart is their approach – they’re much more effective at working with an ecosystem to enhance customer experiences. They aim to deeply understand human sentiment and deploy technology that prescribes to individuals from that perspective. They also leverage AI to enhance process optimization and forecasting, so they can react in real time.

There’s no doubt that new technology has disrupted traditional operating models. AI has transformed the world in dramatic ways and will continue to do so in the coming years. But rather than look at these changes through a lens of discontent or apprehension, consider the opportunities that lie ahead and follow the lead of the Reinventors and Aspirationals as they proceed full steam ahead.

Debbie Landers is vice-president, Cognitive Solutions, IBM Canada.

]]>http://business.financialpost.com/executive/cognitive-solutions-for-innovation-are-you-a-reinventor-a-tactician-an-aspirational-or-an-observer/feed0Visualization of Digital IdentityspecialfpWant to crowdsource wisdom? Or would it be better to go it alone?http://business.financialpost.com/executive/c-suite/want-to-get-wisdom-try-being-your-own-crowd-mark-buchanan
http://business.financialpost.com/executive/c-suite/want-to-get-wisdom-try-being-your-own-crowd-mark-buchanan#respondMon, 22 Jan 2018 12:10:55 +0000https://financialpostcom.wordpress.com?p=1526205&preview=true&preview_id=1526205Crowds of humans can be very good at solving certain kinds of problems. If, for example, you wanted to guess many bacteria live in Lake Erie, you’d be better off asking a random group of people and averaging the result than trying to answer the question alone.

But what if you could be your own crowd, by averaging your own guesses? Bizarrely, research suggests that this can actually work.

The wisdom of crowds operates by exploiting the diversity of views. It’s been used to improve economic forecasts, doctors’ decisions and weather predictions. But we still have a lot to learn about how and when it works. It can go wrong if the people involved are all biased in similar ways, or if one person’s choice influences others. It can work better if you ask people both what they think and what they expect the popular opinion to be, and look for discrepancies between two — a technique that draws out the knowledge of informed subgroups.

So how about using crowd wisdom without access to a crowd, harnessing the different perspectives that one person brings to a question at different moments? Psychologists have been testing the idea in small experiments for several years. Recently researchers hit upon a great source of data: three separate contests at a Dutch casino, each offering a prize of 100,000 Euros to the person who could come closest to guessing the number of pearls held in an oversized Champagne glass. About 160,000 people participated in each contest, and were able to guess repeatedly over a two-month period.

The researchers — psychologists Dennie van Dolder of the University of Nottingham and Martijn van den Assem of the University of Amsterdam — found that peoples’ errors tended to get smaller if they averaged over many guesses, and that the benefit grew with more guesses. It wasn’t a matter of people learning over time — say, by consulting with others. Later guesses showed no significant improvement in accuracy. It was only the average that became more accurate.

The research offered some insights into how individuals can improve their performance. Estimates were better, for example, when people took more time between guesses. This might help them have different thoughts or forget their previous line of thinking, increasing the independence of subsequent guesses and enhancing the diversity that makes crowd wisdom work. Earlier studies, using much less extensive data, found something similar: Accuracy improves if people are encouraged to make estimates in different ways, using different evidence and strategies, a process psychologists call “dialectical bootstrapping.”

Of course, considering a problem from as many angles as possible is a common habit of intelligent people and those who make good decisions.

Even so, you won’t become a genius by drawing on your inner crowd. The casino study found that people’s biases still led them astray, accounting for about 50 per cent of the overall error in their guesses. No number of guesses can fix that, as they all come from the same biased person. So real crowds are still better: Guessing a dozen times can improve one person’s estimate by about 40 per cent; the same result can be achieved by averaging the guesses of two people.

In short, although individuals can improve their performance, seeking the views of others is still a lot better than going it alone. It’s a bit of wisdom that people would do well to recognize: According to psychologists’ studies, they still tend to stick too much to their own initial views.

Mark Buchanan, a physicist and science writer, is the author of the book “Forecast: What Physics, Meteorology and the Natural Sciences Can Teach Us About Economics.”

Some employers have the ineluctable ability to snatch victory from the jaws of defeat. Rick Smith convinced a court that he had not engaged in sexual harassment, but still lost.

Smith was a division manager at southern Alberta’s South Country Co-Op, with 22 years of service. He began a romantic relationship with “AM,” whom he had originally hired and who ultimately reported to him. As with many office affairs, it ended rancorously. AM accused Smith of a series of non-consensual sexual acts, such as comments, kissing, fondling, grabbing, even intercourse. Smith’s supervisor conducted the investigation.

Smith and AM provided conflicting accounts, with Smith portraying a consensual affair and AM, a relationship characterized by coercion, and maintained only to keep her job. Without bothering to probe AM’s version of events or interview any witnesses, Co-Op fired Smith for sexual harassment, sexual assault and lack of candour during the investigation. Smith sued.

Madame Justice Corina Dario of the Alberta Court of Queen’s Bench did not believe either AM’s claim of non-consensual sexual conduct or her claim to have conceded only to maintain her employment. The affair, she found, had lasted for more than four years, well after the date of the alleged incidents and prior to her separation from her husband. Far from feeling coerced, AM had even referred to herself as “Ms. Smith.” Her recall of the dates and times of the alleged incidents and of her frame of mind at the time left the court unconvinced.

Co-op was upbraided for the poor quality of its investigation. It took few steps to substantiate the allegations. Smith’s supervisor did not ask AM for the names of witnesses, much less question them. The only parties interviewed were Smith and AM. The details of the sexual harassment were neglected. The investigator did not ask about the alleged physical contact or the offensive comments purportedly made.

Regardless, Co-Op still prevailed.

Smith had breached his fundamental duty to be truthful. He lied to the investigator and management about the history and nature of this relationship with this direct report. He concealed his conflict of interest when he should have been forthcoming. He also was found to have harassed (albeit not sexually) AM in violation of Co-Op’s workplace policies and failed to follow proper disciplinary procedures. He failed to fully disclose the extent and timing of his relationship with AM, a serious breach given his senior role and position as her superior.

Although Co-Op ultimately prevailed, this remains a stark reminder as to the proper approach to conducting investigations:

Be thorough. A simple accusation of harassment can be ruinous. Ensure you are thorough in uncovering the truth. There must be no precognition as to whom to believe.

Be proactive. Ensure that complaints are acted upon quickly. Determine whether any workplace changes need to be made in order to prevent future complaints.

Be impartial. The investigator should be independent, objective and have no personal ties to either party.

Be knowledgeable. The investigator should also be knowledgeable and competent when it comes to methods for conducting proper investigations. Train someone in-house to do this. Many courses exist. Using legal counsel is a disadvantage as it permits employees to refuse to respond except through their own counsel.

Be diligent. The investigator should keep a written record of the process, with an investigation report summarizing the nature of the allegations, the steps taken, the evidence gathered and the findings.

• Howard Levitt is senior partner of Levitt LLP, employment and labour lawyers. The most recent of his six books is War Stories from the Workplace: Columns by Howard Levitt.